What is the total cost of the equipment

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Question - Shantal Company is installing a new equipment and incurred the following costs:

Cost of equipment per supplier's invoice 2,500,000

Initial delivery and handling cost 200,000

Cost of site preparation 600,000

Consultants used for advance on the acquisition of equipment 700,000

Interest charged paid to supplier for deferred credit 200,000

Estimated dismantling cost to be incurred as required by contract 300,000

Operating losses before commercial production 400,000

Required - What is the total cost of the equipment?

Reference no: EM133186948

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